Last week the business world cheered as Apple became the first American company to be valued by the market at US$2 trillion (the first global company worth US$2 trillion was actually oil giant Saudi Aramco, but that is generally forgotten).
The celebrations when companies hit valuation targets is one of the many mystifying parts of market capitalism (or whatever you call the West’s cronyist system of government).
We don’t celebrate the price of milk hitting $2 a litre or petrol hitting $1.50, but for some reason we celebrate at the prospect of wild asset price inflation. Yet well-known investors like Gene Munster claimed Apple breaking through $2 trillion was “a poll position in investors’ minds. When you cross the milestone first, it’s a signal of leadership."